Tether has issued a press release claiming that their new asset is cool because they have gold in a secretive Swiss vault.
The stablecoin masters (we all know this company for USDT) have created a new token that is pegged to gold. According to the press release issued by Tether, the so-called “Tether Gold” (XAUT) is representing one troy ounce within the gold bars. Those shiny pieces of evil are in the Tether’s private safe. New tokens will roll on the TRON‘s and the Ethereum‘s blockchains. Those will be TRC-20 and ERC-20 tokens, each backed by the precious metal.
In an e-mail sent to news outlets, Tether spokesperson said that the world has increased global demand for gold. The geopolitical need for the alternative financial system is the primary reason for creating the gold-backed cryptocurrency.
Press release issued by the Tether representative didn’t specify the location. They gave no firm name or any other specifications concerning the Swiss vault. What bank or institution is helping the company? Tether is assuring the investors that they have a ‘direct control’ over the golden bars.
Also, they will not charge storage fees.
Paolo Ardoino, CTO Tether, says that the new asset provides both stability of gold and the speed of virtual assets. The asset will serve as the gold substitute for those who want to buy and store gold. Sometimes, people cannot afford to build the special vault or use a bank vault, so the offer is clear.
Tether’s Attempts at Printing More Money Become Ridiculous
The press release from a company like Tether could look legit a couple years ago. Back then, the community was in the state of dream, seeing the cryptocurrencies as the tool for solving the problems.
Nowadays, wise crypto users perfectly see that cryptocurrencies can also create huge troubles. They make traders shot themselves, innocent people are going to jail, ICO scammers take millions and wash away. And the bankers are still printing money like Bitcoin never happened.
Optimists, newbies and longtime holders are only ones who still believe in some crypto ideology behind Bitcoin. If we look at the industry more pragmatically, we could see that all the truth is lying on the surface.
Tons of information are dumped by the NYOAG, Decrypt.co, Bitsonline, Bitfinexed. And a bunch of brave journalists like Paul de Havilland aka Draftkilla or James Edwards aka Cryptomedication. The fact that Tether stablecoin is empty as Dao is pretty obvious. And it is one of the hidden reasons behind Bitcoin’s constant rollbacks to the 8K levels.
Many of the traders don’t want to admit this. But this industry is flawed to the Core with Tether’s investments and bad economic decisions. Dozens of shitcoins that they and their affiliates pour onto exchanges imitate and block the natural growth.
Mainstream adoption became the impossible long-term goal. But the hope is still here. The NYOAG has too much proves of the Tether’s involvement in QuadrigaCX scam, Crypto Capital kitchen and some other fraud.
The freshly leaked document shows that investigators of the Quadriga scam are asking a bunch of controversial individuals for help. Half of them already under investigation, including Crypto Capital. They are on a path to uncovering the scam operations of Quadriga’s CEO. He and Tether presumably involved in a so spicy drug trading and money laundering scheme.
It may seem very unlikely that Tether has gold. Without photos, videos, documents proving the vault’s existence, their words may turn out being a lie. We ladies and gentlemen, can take a comfortable seat, eat popcorn, drink cola and watch what will happen next.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.